Contents

The Royal Edinburgh Hospital was first established by Doctor Andrew Duncan, following the death of Robert Fergusson, a Scottish poet who died in 1774 following mental health problems caused by a head injury. Duncan wished to establish a hospital where the mentally ill could be humanely looked after. The hospital first opened in the early 19th century, following fundraising efforts by Duncan, and monies gifted by the British Parliament.

Today the hospital is the main mental health hospital for the Lothian region, and has treatment services for alcohol and drug addiction.

In 2005, NHS Lothian announced plans for a redevelopment of the Royal Edinburgh Hospital site, which would see a new modern hospital built in the grounds. In November 2014 Nicola Sturgeon announced a £409m public-private funding package which would be funded through the Scottish government's non-profit distributing model. The Royal Edinburgh Hospital would be the main beneficiary with £120m to complete its redevelopment. This is a form of Private finance initiative which caps private sector returns. Any surplus is directed to the public sector rather than shareholders.[2]